The Financial Conduct Authority (FCA) has shared that it welcomes new government legislation that brings Environmental, Social and Governance (ESG) ratings providers under its regulatory remit, marking a significant milestone for transparency and trust in the UK market. ESG ratings play a critical role in investment and capital allocation decisions. The legislation, broadly supported by industry, gives the FCA powers to regulate providers, ensuring transparent, reliable and comparable ratings. The FCA is developing its regime and will consult on proposed rules before year-end. Its approach, informed by IOSCO recommendations, will focus on transparency, governance, systems and controls, and conflicts of interest, supporting the UK’s reputation as a global hub for sustainable finance.

We have recently launched a practical toolkit designed to help business leaders prepare for the realities of modern ESG compliance whilst seizing opportunities to drive both commercial value and real-world impact.

Drawing on candid perspectives from General Counsel, Heads of Legal, and sustainability leaders – plus our own experience advising world-leading household brands – the guide offers insight into sustainability reporting, legal compliance, and risk mitigation and includes spotlight contributions from the United Nations Foundation, the Deposit Management Organisation, Jamie Oliver Limited and Nestle.

Our green claims update provides a round-up of the key legal and regulatory developments relating to green claims. In the latest edition we look key updates including a Which? investigation into over Green Claims of 1,000 online product listings, recent ASA rulings, and key sector updates.